Today’s post can be very brief and kept simple. Namely, the DOW JONES daily chart shows price already making new All Time High (ATH) closes, and thus (green) minor-5 is confirmed. A standard 5=1 relationship targets ~$21815, which is close to the ideal 2.000x major-1 target of $21,800. (Red) intermediate-iii also hit the 2.000x extension of intermediate-i; thus the same extension for major-3 appears rather logical.
Hence, this chart confirms the bullish view I have on the S&P500, which should reach the long term target of SPX2485-2505 for major-3 that my members have been well-aware off over the past months. Why that target zone? Because that’s around the 1.618x extension of Major-1, the 2.000x extension of intermediate-iii and the 1.764 to 2.000x extension of minor-1 for this most recent up wave (intermediate-v). All 3 are typical Fib-extension targets for 3rd waves, 5th of 3rd waves, and 5th of 5th of 3rd waves; respectively. When the Fib-extensions of waves of three different degrees align so well it’s prudent to pay attention.
Back to the DJI’s daily chart: all TIs are pointing up wanting to see higher prices. Price is above all simple moving averages; from the 5-day to 200-day and all are Bullishly stacked (5>10>20>50>100>200). All tells us to expect higher prices going forward. Once price gets close to the $21,800 level -and SPX2485- it will be prudent to re-assess the charts carefully for divergences, etc to tell us major-3 is indeed close to topping.
Figure 1. INDU daily chart: All systems pointing up: higher prices expected. Ideal target ~$21,800